Parliament Question: Privatisation of IDBI Bank

GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF INVESTMENT AND PUBLIC ASSET MANAGEMENT

(DIPAM) LOK SABHA UNSTARRED QUESTION NO. 109 TO BE ANSWERED ON MONDAY, DECEMBER 01, 2025 AGRAHAYANA 10, 1947 (SAKA) PRIVATISATION OF IDBI BANK

109. Shri Rahul Gandhi:

Will the Minister of FINANCE be pleased to state:

(a) whether the Government plans to complete the privatisation of IDBI Bank by 2026, if so, the current status of the privatisation process of the same;

(b) the details of bidders that have submitted expressions of interest or qualified for financial bids under the disinvestment process;

(c) whether the Government proposes to privatise additional PSBs and if so, the details thereof along with the rationale for privatising profit-making Public Sector Banks;

(d) the year-wise details of operating profits of IDBI Bank over the last ten years and the details of IDBI Bank's tangible and intangible assets;

(e) whether the Government has received or is considering any proposal to merge IDBI Bank with another Public Sector Bank instead of proceeding with its disinvestment, if so, the details 43 thereof;

(f) whether the Government has undertaken any assessment of the impact of privatisation on existing employees, depositors and public accountability; and

(g) if so, the details thereof?ANSWER THE MINISTER OF STATE FOR FINANCE (SHRI PANKAJ CHAUDHARY)

(a)&(b) The Cabinet Committee on Economic Affairs (CCEA) in its meeting on 05.05.2021 has given 'in principle' approval for the strategic disinvestment along with transfer of management control in IDBI Bank Ltd. of such extent of shareholding in Government of India and LIC as may be decided in consultation with LIC and within the framework agreed to by the Reserve Bank of India (RBI).

Pursuant to the CCEA’s (Cabinet Committee on Economic Affairs) approval in May 2021 for strategic disinvestment along with transfer of management control in IDBI Bank Ltd, 60.72% of IDBI Bank’s equity is being offered for strategic disinvestment with transfer of management control, wherein GoI is offering 30.48% (post sale GOI’s residual equity to be 15%) and Life Insurance Corporation of India (LIC) is offering 30.24% equity for disinvestment (post sale LIC’s residual equity to be 19%).

The Preliminary Information Memorandum (PIM) for inviting Expression of Interest (EoI) from potential bidders was published on 7th October, 2022. In response to the PIM, multiple Expressions of Interest (EOIs) were received. These EOIs were sent to Ministry of Home Affairs (MHA) for Security clearance and the Reserve Bank of India (RBI) for ‘fit and proper’ assessment. After security clearance from MHA and fit and proper evaluation by RBI, the transaction is currently in the stage of due diligence by Shortlisted Bidders (SBs).

As per the extant process, the identity of bidders cannot be disclosed before completion of the transaction.

(c) No Sir. There is no such proposal at present.

(d) The details of operating profit over the last 10 years are as follows: (Amount in Rs. Crore) Years Mar- Mar- Mar- Mar- Mar- Mar- Mar- Mar- Mar- Mar- 25 24 23 22 21 20 19 18 17 16 Operating 11079 9592 8736 7495 7091 5112 4052 7905 4578 5370 Profit

Source: IDBI Bank In March 2025, IDBI Bank had outstanding capital and liabilities of approx.Rs.4.11 lakh crores which were backed by total assets (tangible and intangible) of the same amount.

(e) No Sir. The disinvestment of IDBI Bank will be carried out as per the CCEA approval.

(f) to (g) The analysis of the impact of strategic disinvestment/ privatization on performance of select Central Public Sector Enterprises (CPSEs) (11 companies) was carried out in

Chapter 9 of the Economic Survey (2019-20). This shows that the privatized CPSEs, on an average, performed better post-privatisation then their peers in terms of net worth, net profit, return on equity, return on assets, gross revenue, net profit margin, sales growth and gross profit per employee.

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